Question

Peter decided to buy a new car. He made a $2,160 down payment and then took a 48-month loan. The total amount for the car, plus interest on the loan, was $16,560. How much did Peter have to pay each month?

Answer 1

16560-2160=14400
14400/48=$300/mo
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Answer 2

$ 300

Explanation:

Given,

The downpayment of the car = $ 2,160,

Total value of car = $16,560,

Thus, the total payment of the loan = 16560 - 2160

= $ 14,400

Number of periods = 48 months,

Hence, the payment in each month =
`\frac{\text{Total payment of loan}}{\text{number of months}}`

`=(14400)/(48)`

= $ 300